Saudi Arabia is killing its own economy because it won't cut oil production

Oil prices have plunged about 60% since the summer of 2014, and
it is not only hurting energy companies' balance sheets — it's
also slowly killing off oil-rich countries' economies, the latest
being that of Saudi Arabia.

Spending this year rose by 13% more than analysts forecast and
topped $260 billion (£174 billion), mainly because of the
country's war efforts in Yemen and its role in helping to fight
ISIS (also known as the Islamic State, Daesh, or ISIL) troops in
neighbouring states. In tandem, revenues were down 15% from
official expectations, reaching $162 billion (£108.7 billion).

Oil prices have dropped from triple-digit highs in June 2014 to
$36.94 as of 7:10 a.m. GMT on Tuesday. This is a huge deal for
Saudi Arabia because oil revenues make up 77% of the country's
total revenue. Because of the severe drop in oil prices, revenue
is down by 23% from the previous year.

The situation is so bad that the Saudi government said petrol
prices, which are usually very cheap in Saudi Arabia because of
the glut of oil the country produces, may increase by 50%; and
diesel, electricity, and water prices will also increase to help
offset the drop in foreign revenues.